The European Commission has banned the release analyst at Russian banks targeted by the sanctions


BRUSSELS, 22 October. The European Commission has banned European banks to publish analytical studies on Russian banks which fell under sanctions. The relevant document published on the official website of the EC.

Prohibited analysis on Sberbank, VTB, VEB, Gazprombank and Rosselkhozbank.

The document notes that “the release of studies formally considered consulting services, but actually contains an indirect advice.”

Banks under sanctions

As previously reported, in late July 2014, the EU led the first batch of sectoral sanctions, which finally closed Western capital markets for Sberbank of Russia, VTB, Gazprombank (Gazprombank) and Russian agricultural Bank (Rosselkhozbank) and VEB. As noted by the experts interviewed 31 July 2015, credit organizations organizations have learned to find money in the domestic market and began to look for a place in Asia, however, to prolonged isolation they are not ready.

The introduction of European sanctions on July 31 last year was no surprise to banks: at that time already had similar restrictions in the USA. However, the last ten years Europe has been the traditional market of raising capital for Russian issuers that are actively registered SPV and mastered the London stock exchange.

Russian banks in the West had a strong brand presence and have even begun to master European retail (Sberbank Europe AG Sberbank and VTB Deutschland, VTB Group). Restrictions from a major financial partner became the domestic bankers call moral rather than commercial. Had to change the whole business paradigm, to seek alternative sources of capital.

The issue of sanctions continues to be extremely painful for banks: Sberbank, VTB, Gazprombank, Rosselkhozbank and VEB refused to comment on the annual results of its work to mitigate the effects of sanctions.

According to Cbonds, got under sanctions of the largest banks during the year I have been able to reduce the debt burden. Repayable debt of Sberbank decreased by 30 July 2015 in annual terms by 19% to $13.5 billion, Gazprombank – on 28%, to $12,31 billion, VEB – 15%, to $to 17.23 billion Total debt of Rosselkhozbank and VTB declined to $billion is 10.51 and $15,072 billion, respectively. In rouble terms the amount of debt to maturity showed an increase from the 40 percent devaluation of the ruble.